Varex Imaging(NASDAQ) VREX

Varex Imaging Corporation makes parts for medical imaging machines. These components help doctors see inside patients to find health problems. The company also sells tools to check airport bags and cargo.

How Varex Views the World

• Medical Components: Tubes, detectors, and software for diagnostic imaging; accounts for 63.7% of revenue in the three months ended July 3, 2026.
• Industrial Technology: High-energy X-ray sources and cargo screening systems; accounts for 36.3% of revenue in the three months ended July 3, 2026.
• Digital Detectors: Flat panel and photon counting tools that convert X-rays into digital images for medical and industrial use.

Big Moves for Future Growth

• Entered into a merger agreement with Teledyne Technologies Incorporated on Aug. 10, 2026.
• Refinanced debt during the second quarter of fiscal year 2026 to secure more favorable interest rates and reduce the overall balance.
• Received approximately $17.0 million in tariff refunds through July 3, 2026, to recover previous duty payments.
• Expanded medical component sales in China to support growing healthcare institutions and diagnostic equipment needs.

Why the Company Stands Out

Varex operates as one of the largest independent global manufacturers of X-ray imaging components. It maintains an installed base of over 170,000 X-ray tubes and 170,000 detectors across various medical and industrial systems.

A Close Look at Financials

• Total revenues reached $210.5 million in the three months ended July 3, 2026, up 3.7% year over year.
• Net income was $10.3 million in the nine months ended July 3, 2026, compared to a net loss of $82.1 million in the nine months ended July 4, 2025.
• Gross margin was 36.4% in the three months ended July 3, 2026, up from 33.3% in the three months ended July 4, 2025.
• Total debt outstanding, net of issuance costs, was $347.1 million as of July 3, 2026.
• Research and development expenses were 11.1% of total revenues in the three months ended July 3, 2026.

The Bottom Line

Varex has evolved from a component manufacturer into a specialized provider of both hardware and software for global imaging systems. Its pending merger with Teledyne signals a move toward consolidation within the broader industrial and medical technology markets.